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Levi Strauss gains after co raises FY profit forecast

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Weekly jobless claims increase more than expected

(Updates to 1600 EDT)

By Caroline Valetkevitch

NEW YORK, April 4 (Reuters) - U.S. stocks ended sharply

lower on Thursday as Federal Reserve officials took a cautious

approach in comments on the outlook for interest rate cuts,

while investors braced for Friday's key U.S. monthly jobs

report.

Investors also weighed comments by U.S. President Joe Biden,

who called for an immediate ceasefire in a call with Israel

Prime Minister Benjamin Netanyahu over the Gaza war. Oil prices

climbed on the geopolitical tensions.

Among the comments by Fed officials, Minneapolis Fed Bank

President Neel Kashkari said that at the U.S. central bank's

meeting last month he penciled in two rate cuts this year but

that if inflation continues to stall, none may be required this

year.

Earlier on Thursday, Richmond Fed President Thomas Barkin

said the U.S. central bank has "time for the clouds to clear" on

inflation before starting to cut rates.

"It's a very careful, measured approach," said Paul Nolte,

senior wealth adviser and market strategist for Murphy & Sylvest

in Elmhurst, Illinois.

In addition, he said, "there's some nervousness coming into

that (jobs) report - that maybe I don't want to be as bullish

coming in."

Stocks were higher earlier in the day following U.S. jobless

claims data that helped to underpin rate-cut hopes.

The data showed the number of Americans filing new claims

for unemployment benefits increased more than expected last

week.

Friday's monthly U.S. jobs report could hold more clues on

the labor market and inflation.

According to preliminary data, the S&P 500 lost 64.03

points, or 1.23%, to end at 5,147.46 points, while the Nasdaq

Composite lost 228.38 points, or 1.40%, to 16,049.08.

The Dow Jones Industrial Average fell 538.44 points, or

1.38%, to 38,588.70.

Economists polled by Reuters expect the nonfarm payrolls

for March due on Friday to fall to 200,000 from 275,000 in

February, while the unemployment rate will likely remain steady

at 3.9%.

Money markets still currently expect a near 60% chance of at

least a 25 basis-point rate cut in June, according to the CME

Group's FedWatch tool.

On the plus side, Levi Strauss shares jumped after

the apparel maker raised its annual profit forecast, citing

savings from its recent cost-cutting measures and fewer

discounts.